Guangdong Zhenrong seeks funds to revive Titan Petrochemicals

Guangdong Zhenrong seeks funds to revive Titan Petrochemicals

Guangzhou: Guangdong Zhenrong Energy is seeking funds from the private lending market to help revive Titan Petrochemicals, which is on the verge of liquidation, local financial media China Business Journal has reported.

Zhenrong has commissioned agencies to look for funds from private lending firms in cities including Guangzhou and Shenzhen and is willing to accept an interest as high as 22-28%. The company will pledge its 160m shares in Hong Kong-listed Sheng Yuan Holdings as collateral.

A private lending agency in Guangzhou confirmed that it has received an inquiry from Zhenrong to borrow RMB60m ($9.6m), and the purpose of the lending is to solve the stock trading resumption of TitanPetrochemicals. However, the lending agency didn’t approve the loan as it reckons the deal to be highly risky.

Zhenrong became the controlling shareholder of Titan Petrochemicals in August 2012, acquiring 45.57% equity shares in the company.

Jason Jiang

Jason worked for a number of logistics firms following his English degree, then switched this hands-on experience to writing and has since become one the most prolific writers on the diverse China logistics industry writing for a host of titles including Supply Chain Asia, Cargo Facts and Air Cargo Week. Jason’s access to the biggest shippers with business in China has proved an invaluable source of exclusives.

Related Posts